Jacques De Kock

After a decent period of returns through overweight allocations in SA property, SA equity and developed market equities, we started reducing risk assets in December. Although we are still positive on risk assets, we feel interest rate cuts are not going to be as significant as the market might be anticipating, dampening our risk appetite heading into the first quarter of 2025. Together with the unknown implications of a Trump-led presidency (with some Musk influence) and unpredictable Chinese policies, we feel that volatility is going to be the theme of the quarter. Fortunately, a diversified strategy can gain from attractive real yields in cash, bonds and property. Our underlying managers remain confident that there are enough specific stock selection opportunities in global and local markets to provide investors with double-digit returns this year. Our portfolios are therefore designed to be flexible in navigating the difficult macroeconomic environment through process-driven tactical asset allocation shifts.